Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
B Ltd, a New Zealand company, has invested heavily in the shares of many New Zealand listed companies, and is required by NZ IFRSs to measure the investment in shares at fair value. The balance date of B Ltd is 31 May 2020. Because of the corona virus pandemic, prices of shares of all listed companies experienced significant volatility, and the price of the shares in which B Ltd invested declined significantly during the year ended on 31 May 2020. Although NZ IFRSs require B Ltd to measure its investment in shares at fair value, the company did not measure its investment at fair value on 31 May 2020. The auditor of B Ltd asked the firm to measure its investment at fair value. The company disagrees with the auditor, and argues that share prices have been volatile during the COVID-19 crisis, and hence do not reflect faithfully the fair value of its investment. Measuring the investment at fair value at 31 May 2020 would be misleading to investors. The management of B Ltd and its auditor agreed to sit in a meeting to discuss this disagreement.
Required
Question a) Suppose you are a junior auditor at the audit firm auditing the financial statements for the year ended 31 May 2020. Write down a memo for the engagement partner that they would use to prepare for the meeting.
Question b) Why do you think the management of B Ltd might not be interested in measuring the investment in shares of listed companies at fair value?
Financial Statement Analysis and Preparation
Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?
An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.
Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited
Prepare general journal entries for Goela Ltd
Prepare the journal entry to record the acquisition of the assets.
Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.
Explain the IASB Conceptual Framework's perspective of users and their decisions.
T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd